In advance of a hearing next week, the House Financial Services Committee has released the third draft of a stablecoin bill for this year, intended to combine ideas from both parties.
A new draft of the leading U.S. legislative proposal for regulating stablecoins has been released by the Republican chair of the House Financial Services Committee, and it includes some of the positions taken by Democratic lawmakers.
Although the bill that was posted on Thursday is still just a draft and is supposed to be further discussed at a committee hearing on June 13, it represents another possible step toward a bipartisan negotiation on the legislation, which many people believe could be the easiest way to take a first step toward crypto regulation in the United States.
A spokesperson for the committee claims that this significantly shorter new draft, which also includes additional points from Republican committee members, is intended to begin integrating some of the positions held by the two parties. This version would still allow state regulators to oversee the companies that issue the tokens while requiring the Fed to write requirements for their issuance.
It grants the Fed some additional powers from the Republican's previous bill, including the authority to intervene against state-regulated issuers in an emergency. Additionally, states could delegate their supervision responsibilities to the federal watchdog.
The board's administrator, Rep. Patrick McHenry (R-N.C.), has considered stablecoin regulation a need since last year, before he assumed control over the board of trustees. At the point when he won the hammer, he proceeded with the work; however, leftists had whined that conservatives were re-composing the bill without their feedback. Later, they produced their own version. The bill's narrow scope and previous bipartisan support had been the effort's strengths up to this point; however, Democrats' opinions of the most recent version are still unclear.
The bill, were it presented and passed by the two offices of Congress, would lay out the primary U.S. guidelines for stablecoins—tokens attached to consistent resources, for example, the dollar—that are generally utilized in crypto markets for exchanging and out of additional unstable coins.
Even though the Federal Reserve insists that it has not taken a position on whether such a central bank digital currency (CBDC) is warranted for the United States, the new draft also eliminates a previous section that called for research on the advantages of a digital dollar. This is an increasingly contentious concept that has been criticized by Republicans.
(Jesse Hamilton, CoinDesk, 2023)